Neither I nor the author of this article are anywhere near the first person to point out that banking is ripe for disruption. That being said, one of the key differentiators between banks and, say, taxi services is that the regulations that line the banking industry cannot simply be shed as obsolete. While any regulation has the potential to encourage consolidation and monopolization by driving up cost of entry, that does not mean that regulation is inherently bad or not needed. In the case of the financial industry, the almost infinite number of things banks can do with borrowed money absolutely force a level of regulation and accountability, or the industry will not function properly.
On that note, peer-to-peer lending does immediately introduce a level of risk. Just like Kickstarter or any other online funding ventures, there are most likely plenty of people who have the appropriate risk appetite, especially if there comes the added benefits of reduced costs. That being said, there’s a reason we should be treading lightly into upending financial markets. I’m perfectly fine at the pace we’re going…and admittedly I have for the moment stuck with very conventional banking products.